PCB Bancorp (PCB): Business Model Canvas [Dec-2025 Updated]

You're trying to get under the hood of PCB Bancorp's business to see if their community-focused, relationship-driven model holds up against today's economic backdrop. After spending years mapping out complex financial institutions, I've distilled their entire operation into this Business Model Canvas, focusing on what matters right now. It's clear their value proposition centers on specialized commercial lending to the Korean-American community in Southern California, but the real strength lies in their foundation: they held $3.18 billion in total assets as of Q1 2025 and maintained a strong Tier 1 Capital Ratio of 11.25% in that same period. Honestly, seeing how these core activities generate their reported $113 million TTM Revenue as of September 30, 2025, is key to understanding their next move, so check out the breakdown below.

PCB Bancorp (PCB) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships PCB Bancorp (PCB) relies on to keep the lights on and the transactions flowing, especially given the uncertain outlook mentioned in their July 2025 commentary regarding trade policies and capital markets. These partnerships are critical infrastructure, not just nice-to-haves.

Federal and state regulatory bodies (FDIC, Federal Reserve)

These bodies set the rules of the road for PCB Bank, the sole subsidiary of PCB Bancorp. The relationship is one of mandatory oversight and compliance, directly impacting operations and capital planning. For instance, as of March 31, 2025, PCB Bancorp managed $3.18 billion in total assets, all subject to these regulations. The bank also declared a quarterly cash dividend of $0.20 per common share in July 2025, a decision made within the regulatory framework governing capital distribution.

• FDIC insurance coverage for deposits up to $250,000 per depositor.
• Federal Reserve oversight as a bank holding company.
• Compliance with capital adequacy ratios dictated by regulators.

Core banking system vendors for transaction processing

PCB Bancorp needs a robust, modern core system to handle its daily transactions, loan servicing, and deposit management. While the specific vendor isn't publicly detailed in the latest filings, the industry trend shows reliance on major players. The global core banking software market is expected to reach $40.67 billion by 2029, indicating the high value placed on these technology partners. PCB Bank's operations, which supported $2.73 billion in loans held-for-investment as of March 31, 2025, depend entirely on this system for real-time processing.

Here's a look at the scale of the technology PCB Bancorp is competing against or partnering with in the vendor ecosystem:

Correspondent banks for interbank services and liquidity

For services outside of PCB Bank's direct footprint in California, Washington, and Georgia, correspondent banks are essential for clearing, settlement, and accessing broader payment networks. This partnership type is crucial for managing the liquidity needs of a bank with $2.71 billion in total deposits as of March 31, 2025. These relationships allow PCB Bank to offer services efficiently across state lines.

The need for liquidity management is constant; for context, Raymond James's bank deposit programs, which are a form of interbank funding/liquidity management for other institutions, held $56.4 billion in total funding as of 2Q FY25.

BSA/AML compliance software providers

Managing the risk associated with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) compliance is non-negotiable, especially for a community bank serving specific markets. This partnership involves specialized software vendors that provide monitoring, reporting, and case management tools to detect suspicious activity. The effectiveness of this partnership directly influences the risk profile PCB Bancorp presents to the Federal Reserve and FDIC. A failure here could lead to significant fines, which would impact the reported net income of $7.7 million achieved in Q1 2025.

Financial market makers like Raymond James & Associates

Raymond James & Associates is explicitly identified as a Market Maker for PCB Bancorp stock, which helps ensure trading liquidity for PCB's shares on the Nasdaq. This relationship is vital for investor confidence, especially when the stock price has ranged between $16.00 and $22.45 over the preceding 52 weeks, with a recent price of $21.07 as of October 31, 2025. The market capitalization stood at approximately $300M based on 14.3M shares outstanding then. Raymond James also has significant scale in deposit gathering programs, with $16.8 billion in Raymond James Bank Deposit Program (RJBDP) balances with third-party banks as of March 2025, showing the depth of their financial market involvement.

Key aspects of this market-making relationship include:

• Providing bid/ask quotes to support trading of PCB stock.
• Supporting the overall market perception of PCB Bancorp.
• The firm's contact point is listed at One Embarcadero Center, Suite 650, San Francisco, CA 94111.

PCB Bancorp (PCB) - Canvas Business Model: Key Activities

You're looking at the core engine of PCB Bancorp, the day-to-day work that keeps the lights on and the balance sheet growing. Honestly, for a community bank like PCB Bancorp, it all boils down to managing credit risk, attracting core funding, and keeping regulators happy while returning capital to shareholders.

Commercial and residential loan origination and servicing

The primary activity here is funding loans, which directly drives net interest income. As of March 31, 2025, Loans Held-for-Investment stood at $2.73 billion, showing growth from the prior year-end. This activity is central to the bank's mission, focusing on commercial and residential lending, predominantly serving the Korean-American community. You saw net interest income rise to $27.0 million in the third quarter of 2025, which is a key indicator of successful loan deployment and yield management. Still, the servicing side can be variable; noninterest income from loan servicing fees saw a decrease of 12.4% in Q1 2025.

Here's a quick look at the balance sheet growth supporting this activity:

Deposit gathering and cash management services

Securing stable, low-cost funding is just as important as making loans. PCB Bancorp successfully grew its deposit base to support asset expansion. Total Deposits reached $2.71 billion at the end of Q1 2025. By the third quarter, deposits had climbed further to $2.91 billion as of September 30, 2025, an 18.5% increase year-over-year. This growth reflects effective cash management services for their customer base.

The key focus areas in deposit gathering include:

• Growing retail deposits, which increased by $140.6 million quarter-over-quarter in Q3 2025.
• Managing the mix, as uninsured deposits rose to 41.4% in Q1 2025.
• Maintaining a healthy loan-to-deposit ratio, which improved to 94.8% in Q3 2025.

Strategic expansion and branch network optimization

PCB Bancorp actively manages its physical footprint to enhance efficiency and reach. You saw concrete actions taken in the first half of 2025 to optimize this network. The bank is definitely focused on being where its customers are, or where they can attract more traffic.

Specific activities included:

• Relocating a branch in Orange County, California, to a spot with significantly higher foot traffic in Q1 2025.
• Merging two branches in Orange County and two branches in Los Angeles during Q1 2025.
• Planning the opening of their first full-service branch in Georgia in the second quarter of 2025.

Maintaining regulatory capital and compliance

This is a non-negotiable activity for any bank holding company. PCB Bancorp maintained capital levels comfortably above regulatory minimums, which is crucial for operational stability and investor confidence. For instance, the Common Tier 1 Capital Ratio stood at a strong 11.25% in Q1 2025, well above the well-capitalized minimum requirement of 4.5%.

To be fair, capital strength remained a focus, with other key ratios reported as:

• Total Capital Ratio at 14.98% in Q1 2025.
• CET1 at the HoldCo level at 11.52% in Q3 2025.
• Bank CET1 at 13.61% in Q3 2025.

The bank is definitely keeping a close eye on internal controls, especially following a material weakness identified in Q1 2025.

Managing the stock repurchase program

Returning capital to shareholders via buybacks is a key activity, signaling management's belief in the stock's value. The program was extended in July 2025 to expire on July 31, 2026. As of July 23, 2025, PCB Bancorp had 428,473 shares remaining authorized for repurchase under the program. This is out of an original authorization of up to 720,000 shares. Finance: draft 13-week cash view by Friday.

PCB Bancorp (PCB) - Canvas Business Model: Key Resources

You're looking at the core assets that power PCB Bancorp's operations as of late 2025. These are the tangible and intangible things the bank owns and controls that are essential to delivering its value proposition.

Strong capital base and liquidity is a foundational resource. As of the first quarter of 2025, PCB Bancorp reported Total Assets of $3.18 billion in Q1 2025. This financial strength is further evidenced by regulatory metrics reported around that time, showing a Common Tier 1 Capital Ratio of 11.25% and a Total Capital Ratio of 14.98%. The latest reported Total Assets figure, as of September 2025, reached $3.36 Billion USD.

Here's a quick look at the balance sheet strength around the first half of 2025:

The human element is critical for a relationship bank. PCB Bancorp relies on its dedicated relationship managers, with a count reported at approximately 37 as of 2023. This team supports the bank's mission to partner with business clients for total relationship banking.

The physical branch network anchors its presence, primarily in Southern California, serving the Korean-American and other minority communities. As of early 2025 filings, the network included:

• 9 Southern California Branches
• 2 New Jersey Branches
• 1 New York Branch
• 2 Texas Branches
• 7 Loan Production Offices (LPOs) across six states

Note that in the first quarter of 2025, PCB Bancorp merged two branches in Orange County and two in Los Angeles, while relocating one branch in Orange County. They also planned to open their first full-service branch in Georgia in the second quarter of 2025. The bank's service areas also include Bellevue, Washington, and Atlanta, Georgia.

For transaction processing and customer access, the bank utilizes proprietary and third-party digital banking infrastructure. This includes an upgraded website rolled out in December 2023, featuring improved usability. Furthermore, a new core system conversion, scheduled for 2024, was intended to strengthen technology with an improved online banking platform and cash management capabilities. Digital services offered include online bill pay. The bank also provides specialized services like remote deposit capture.

Finance: review the Q3 2025 asset growth against the Q2 2025 projections by Monday.

PCB Bancorp (PCB) - Canvas Business Model: Value Propositions

You're looking at how PCB Bancorp (PCB) keeps its clients loyal. It's a focused approach, definitely centered on specific markets and strong service.

Specialized commercial lending for small and middle-market businesses is a core offering. The loan book reflects this focus; Loans Held-for-Investment stood at $2.73 billion as of September 30, 2025. The bank also emphasizes its success in the Small Business Administration (SBA) market, reporting sold balances of $29.0M in the third quarter of 2025, contributing to a year-to-date SBA gain increase of 53% year-over-year.

The bank's value proposition includes deep cultural and language expertise for the Korean-American community. This specialized focus helps PCB Bank serve this niche effectively across its operating footprint, which includes Los Angeles and Orange Counties, California.

For treasury management, PCB Bancorp provides flexible cash management services. While specific usage statistics for remote deposit capture or positive pay aren't public, the bank is clearly growing its deposit base, with Total Deposits reaching $2.91 billion at September 30, 2025. The focus on core deposits is evident, as retail deposits grew by 6% quarter-over-quarter in Q3 2025.

The service model is relationship-driven, aiming for stickiness. The target customer retention rate is stated as 87%. This relationship focus supports strong financial performance, with Net Interest Income for Q3 2025 reported at $27.0 million, an increase of 18.7% year-over-year.

PCB Bancorp competes by offering competitive interest rates on loans and deposits. The Net Interest Margin (NIM) was reported at 3.28% for the first quarter of 2025.

Here's a quick look at the scale of the lending and deposit activities as of late 2025 reporting periods:

The bank's operational efficiency supports these value drivers, with the efficiency ratio improving to 48.92% in Q3 2025 from 50.63% in Q2 2025.

The key service components that underpin these propositions include:

• Specialized commercial loan origination.
• Serving the Korean-American community.
• Digital tools for cash management.
• Strong credit quality metrics (NPLs/loans at 0.30% in Q3 2025).
• Maintaining a solid Allowance for Credit Losses (ACL) ratio of 1.20% at September 30, 2025.

PCB Bancorp (PCB) - Canvas Business Model: Customer Relationships

You're looking at how PCB Bancorp (PCB) connects with the people and businesses it serves, which is central to its identity as a relationship bank. This approach is what management pointed to in Q2 2025 as a key factor in navigating economic uncertainty.

The high-touch model is supported by the sheer scale of the client base it manages. As of the third quarter of 2025, PCB Bancorp held total assets of $3.36 billion and total deposits reaching $2.91 billion. That deposit base represented an 18.5% increase year-over-year as of September 30, 2025.

The structure clearly relies on dedicated personnel to maintain these connections, especially for its core business segments.

Dedicated relationship managers, often embodied by senior leadership at the branch level, drive this personalized service. For instance, Branch Managers are explicitly responsible for overall management, strategic initiatives, and client relations of their respective locations. This structure helps foster customer loyalty and drives business growth within the local footprint. This personal touch is a deliberate strategy, as the bank's origins trace back to serving a specific community-Korean-Americans in the greater Los Angeles area-since 2003.

Community-focused engagement is not just a talking point; it's baked into the operational roles. Branch Managers focus on delivering outstanding customer service and cultivating client relationships, which is crucial for strengthening PCB Bancorp's presence in areas like Rowland Heights. This local market expertise is what allows the bank to adapt and meet the unique needs of its customers, even amid broader economic uncertainty.

Still, the modern banking experience demands efficiency, so self-service options are a necessary complement to the high-touch model. While PCB Bancorp's specific digital adoption rates aren't public, the general U.S. context shows a clear expectation for robust digital tools:

• 77% of U.S. consumers prefer managing bank accounts via a mobile app or computer.
• Over 83% of U.S. adults used digital banking services as of 2025.
• 72% of global banking customers now prefer using mobile apps for core services.
• 83% of customers report that digital innovations make banking services more easily accessible.

The bank's ability to successfully deploy new technology is a stated factor in its future performance. You can bet the digital platforms-mobile and online-are designed to handle the day-to-day needs, freeing up those dedicated relationship managers for more complex business and personal client needs.

Finance: draft the Q4 2025 deposit segmentation report by next Wednesday.

PCB Bancorp (PCB) - Canvas Business Model: Channels

You're looking at how PCB Bancorp (PCB) gets its value proposition-relationship-focused banking-into the hands of its customers as of late 2025. The channels mix is a blend of traditional, physical presence and modern digital tools, all supporting that core relationship banking model.

The physical footprint remains important, especially for their core small and middle-market business clientele. While the exact count fluctuates due to optimization efforts, the network is anchored by a physical presence in key markets.

• Physical branch network: Approximately 15 locations, following consolidation and strategic additions.
• Confirmed expansion: Establishment of the first full-service branch in Suwanee, Georgia, during the second quarter of 2025.
• Primary physical markets: Southern California (Los Angeles and Orange Counties) and the East Coast (New Jersey and New York).

Loan Production Offices (LPOs) serve as crucial, lower-overhead access points for loan origination outside the main branch hubs. These are key for geographic reach beyond the established branch footprint.

The last reported specific number for LPOs was seven offices, strategically placed across multiple states, including the key markets of Washington and Georgia, supporting the bank's growth outside its California base. This network is designed to capture business and commercial loan opportunities where a full-service branch might not yet be warranted.

Digital channels are essential for transaction efficiency and customer convenience. PCB Bancorp has been investing in its technology infrastructure, including a core system upgrade completed around 2024, to enhance these platforms.

• Online banking portal: Used for account management, transfers, and business services.
• Mobile banking application: Provides on-the-go access, supporting the trend where mobile platforms are becoming the primary way customers interact with their finances.

The direct sales force is the human element that underpins the entire channel strategy, reinforcing the bank's identity as a relationship bank. These professionals are the primary interface for the bank's target market of small and middle-market businesses.

While a precise, real-time count of dedicated relationship managers isn't public, the overall employee base supporting operations and sales was reported at 270 total employees as of late 2025. These individuals drive the 'Total Relationship Banking' mission.

Here's a quick look at the balance sheet scale these channels are supporting as of the third quarter of 2025:

The LPOs, like the one in Bellevue, Washington, and the new Georgia branch, are direct conduits for growing the loan portfolio, which stood at $2.80 billion as of mid-year 2025. The digital portal and mobile app help service the $2.91 billion deposit base efficiently. Finance: draft 13-week cash view by Friday.

PCB Bancorp (PCB) - Canvas Business Model: Customer Segments

You're looking at the core clientele for PCB Bancorp as of late 2025. This bank holding company, through its sole subsidiary PCB Bank, focuses its relationship banking efforts on specific geographic and demographic niches.

The primary customer base is geographically concentrated in Southern California, specifically serving Los Angeles and Orange Counties, though they have expanded operations to include Bellevue, Washington, and Atlanta, Georgia, with a new full-service branch opening in Suwanee, Georgia, in the second quarter of 2025.

The key customer segments are:

• Small and middle-market businesses (SMEs) in Southern California.
• Individuals and professionals, with a historical and ongoing focus on the Korean-American community in the greater Los Angeles area.
• Real estate investors seeking commercial and residential loans.
• Customers utilizing specialized services, as evidenced by the CEO noting uncertainty in certain industries due to ongoing tariffs and trade restrictions, suggesting a segment reliant on services like trade finance.

The business model is heavily weighted toward commercial lending, which directly supports the SME segment. As of March 31, 2025, the total Loans Held-for-Investment stood at $2.73 billion, up from $2.63 billion at the end of 2024.

Here's a quick look at the composition of the loan book, which shows the emphasis on business and commercial real estate:

The bank reported strong organic growth in its commercial lending, with commercial loan growth reaching $360.7 million in the second quarter of 2025 alone. This momentum supports the small-to-medium sized business segment that forms the backbone of the bank's lending activity. The bank's mission, as stated in its 2024 Annual Report, is to help first generation Asian-American immigrants realize the American dream through business ownership, defintely cementing the focus on this demographic within the SME space.

For individuals and professionals, the bank offers a broad range of deposit products alongside its loans. Total Deposits reached $2.71 billion as of March 31, 2025. The bank's commitment to relationship banking is designed to capture both the business and personal financial needs of its core constituents.

PCB Bancorp (PCB) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for PCB Bancorp as of late 2025. For a relationship-focused bank, the cost of funding and the cost of people are front and center. Here's the quick math on what it costs to run the business based on first quarter 2025 figures.

The largest direct cost tied to the balance sheet is the expense incurred to fund the assets. With Total Deposits at $2.71 billion at March 31, 2025, the corresponding interest expense is a major driver.

Here is a summary of the key cost components for PCB Bancorp in Q1 2025:

The $14.5 million in Total Noninterest Expenses is an aggregate figure that covers everything outside of interest paid to depositors and the provision for bad loans. This category is where personnel and technology costs live.

Personnel costs are significant for a relationship bank like PCB Bancorp, as they directly support the loan and deposit generation engine. As of March 31, 2025, the company maintained 257 full-time equivalent employees, covering relationship managers and branch staff.

The remaining noninterest expenses are composed of various operational costs. You should track these sub-components closely:

• Personnel expenses for relationship managers and branch staff, which saw a decrease in salaries but an increase in bonus accrual for the quarter.
• Technology and compliance costs, which include items like core system maintenance; the total noninterest expense figure of $14.5 million was lower than the prior quarter due to reduced professional fees and other operational costs.

Finance: draft 13-week cash view by Friday.

PCB Bancorp (PCB) - Canvas Business Model: Revenue Streams

You're looking at how PCB Bancorp actually brings in the money, which, for a bank holding company, centers heavily on its lending activities and associated fees. Honestly, the core revenue driver remains the spread between what they earn on assets and what they pay for liabilities.

The primary engine is Net Interest Income from loans. This is the bread and butter. You see this reflected in the balance sheet growth, where Loans Held-for-Investment were reported at $2.73 billion as of March 31, 2025, showing expansion from the prior year-end. For the most recent quarter, Q3 2025, the Net Interest Income hit $27.0 million.

Next up is Noninterest income from service charges and fees, which is more transactional. This category includes things like service charges and, importantly for PCB Bancorp, gains from selling loans. While Noninterest Income saw a dip in Q1 2025, the gain on sale of loans picked up steam later in the year. For instance, the Gain on sale of loans in Q3 2025 was $1.62 million.

To give you a snapshot of the recent top-line performance, the total reported revenue for the third quarter ending September 30, 2025, was $30.39 million. Looking at the trailing twelve months (TTM) revenue as of September 30, 2025, PCB Bancorp posted $107.74 million.

The bottom line result for that strong third quarter was Net income available to common shareholders of $11.3 million for Q3 2025. That's a solid return on the business activities.

Here's a quick look at how the key components of revenue stacked up in Q3 2025, compared to the loan base that generates the interest income:

You should also note the context around the noninterest income dip you mentioned. In Q1 2025, Noninterest Income decreased by 12.4% to $2.6 million, largely due to lower loan servicing income and reduced gains on loan sales that quarter. So, the revenue mix shifts; the gain on sale of loans is definitely a variable component of that noninterest income stream.

The key revenue-generating asset base was:

• Loans Held-for-Investment (as of Q1 2025): $2.73 billion
• TTM Revenue (as of Sep 30, 2025): $107.74 million
• Net Income (Q3 2025): $11.3 million

Finance: draft 13-week cash view by Friday.